Lion Air 2014 outlook: More market share gains in Indonesia as aircraft delivery rate increases

Lion Air could make significant progress in 2014 in its quest to further increase its already leading share of the Indonesian domestic market. The group plans to add nearly 30 aircraft under its three Indonesian operating certificates in 2014, most of which will be used to expand in Indonesia's huge and rapidly growing domestic market.

The Lion group's expansion in Indonesia slowed in 2013 as it focused on spooling up its new affiliates in Malaysia and Thailand. There will be more growth for Malindo Air and Thai Lion Air in 2014 but, as the group will take significantly more aircraft compared to 2013, there will be an opportunity to pursue faster growth in Indonesia.

Lion has a medium to long-term goal of capturing a 60% share of the domestic market, up from a 45% share in 2011 and 2012. A 60% share seems unrealistic given the expansion plans of some of its competitors but further gains are likely, starting in 2014.